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The optimal capital structure: A) will vary over time as taxes and market conditions change. B) will remain constant over time unless the company changes its primary operations. C) will be the same for
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The optimal capital structure: A) will vary over time as taxes and market conditions change. B) will remain constant over time unless the company changes its primary operations. C) will be the same for all companies within the same industry. D) places more emphasis on operations than on financing. E) is unaffected by changes in the financial markets.

User Robert
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Answer:

A) will vary over time as taxes and market conditions change.

Step-by-step explanation:

The capital structure is a combination of the debt and equity and if this is the optimum capital structure so it would be the best combination. Also, the equity financing maximize the market value of the company while at the same time it reduced the cost of capital

Therefore it will vary with respect to the taxes and the change in the market conditions

User Peak
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